Hindustan Construction Company (HCC) on Thursday reported a net profit of Rs 234 crore for the October-December quarter of 2019-20 against Rs 9.91 crore in the year-ago period mainly on the back of ‘write-back’ of Rs 331 crore of provisions.
Total turnover in the quarter under review was at Rs 1,075 crore against Rs 1,102 crore in the year-ago period. The company also announced a plan to reduce its debt by Rs 2,100 crore.
“The company reported a net profit of Rs 234 crore in Q3 FY20 mainly on write-back of Rs 331 crore of provisions taken in Q4 FY19. On January 10, 2020, the company’s lenders initiated a carve-out of about Rs 2,100 crore of debt to a third-party-controlled SPV along with certain arbitration awards and claims in a move that will significantly de-leverage the company and address its asset-liability mismatch,” the company said in a statement.
